Uchumi Supermarkets has pushed for a second time its rights issue to March to allow the Capital Markets Authority (CMA) approve its share price offer. The retailer had targeted to conduct the cash call in December last year but had to postpone to January after it was hit by delay in cross-listing its shares on Uganda Securities Exchange and trading over the counter in Rwanda.
But Uchumi chief executive Jonathan Ciano said the company is now ready to raise money through shareholders by the end of the month or early March after it sets an offer price. “The share price offer has not yet been agreed on, we are also waiting for regulator’s approval,” said Ciano at a lottery grand draw to reward loyal customers in Nairobi yesterday.
As an incentive in the rights issue, for every eight shares, shareholders will buy three shares at below the offer price. The company, however, did not indicate what the price difference will be. Ranked the second largest supermarket chain by sales in East Africa, Uchumi targets to increase its nominal share capital from Sh2 billion to Sh3 billion by creating 100 million shares to be floated to shareholders.
“We will use the money from the cash call to refurbish our existing branches and open more branches,” Ciano said. The CEO confirmed the company has cleared its debt and will use internally generated revenues for its expansion initiatives. This is a sign the firm is shying away from corporate bonds and loans to eliminate a culture of debts that had stalked its operations when it closed down.http://www.thepeople.co.ke/51994/uchumi-enters-final-stretch-rights-issue/

I think the end of December numbers will not be that rosy, Uganda with high inflation will eat into profits plus all the new branches opened will increase operating expenses.

Also prices tend to go down to settle slightly above the expected rights issue price. I expect rights price at 15/=

This share has fried me mpaka now am roasted. From 20 to now 16.50.with reduced earning and right issues adding more wood to the fire. Will it follow home afrika or it will be like safaricom at 3bob and now 11.80

Trust Wazuans? They shouted sell when this gem was taking off at 8 bob after the pushback from the parking at 6 bob. Even during cruiz at 15 they dint shut up. The plane then flew all the way to 24.

smh. there are some wazuans who called Home Afrika a BUY all the way from the 10s but THE WAZUANS called it a SELL. Tafakari haya